Weak world demand, pepper prices 'faint'

With pepper production in Vietnam, 95% is for export, domestic consumption accounts for only 5% - Photo: THAO THUONG

On December 20, speaking with Tuoi Tre Online , the leader of the group, which is in the top 3 pepper exporting enterprises in Vietnam in the first 10 months of 2024, said that domestic pepper prices have decreased because world demand is extremely gloomy.

“Despite the end of the year festival, demand has decreased sharply. The reason is that markets have bought enough goods and stored them until the end of the first quarter of 2025. Moreover, pepper from countries like Indonesia and Brazil is much cheaper than Vietnamese pepper. Some types are even tens of thousands of VND/kg lower. Therefore, the current pepper price has decreased and will continue to decrease, which is not surprising,” he said.

The leader of this export enterprise also said that every year, November, December and January of the following year are the "regular" times when pepper prices decrease.

He added: “Vietnamese pepper has strengths in the European market. In 2024, the US increased imports of 40% of Vietnamese pepper output. It is predicted that in 2025, demand will decrease because the quantity is sufficient. Therefore, in the near future, whether pepper prices will increase or decrease or not depends on the people. The psychology of holding on to goods creates price pressure to wait for more favorable prices.”

On December 20, the domestic market recorded pepper prices at around 146,000-147,200 VND/kg, a slight decrease of 200-1,000 VND/kg in the Southeast region.

Specifically, pepper prices in Binh Phuoc and Dong Nai are 146,000-147,200 VND/kg; while in Ba Ria - Vung Tau province, pepper prices are 146,000-146,500 VND/kg.

Pepper in the Central Highlands region is priced higher. For example, pepper in Dak Nong province was purchased at the highest price of 147,200 VND/kg, unchanged from yesterday. Meanwhile, the prices in Dak Lak and Gia Lai provinces were 147,000 VND/kg and 146,000 VND/kg, respectively.

In the world market, pepper prices from Indonesia and Brazil have also been adjusted down, and are lower than Vietnamese pepper.

In the latest trading session, the International Pepper Community (IPC) listed the price of Indonesian black pepper at 6,736 USD/ton, down 1.1% compared to the previous trading session; the price of Brazilian black pepper also decreased by 1.2%, down to 6,275 USD/ton. Meanwhile, the price of Vietnamese black pepper stood at 6,400 USD/ton.

On the other hand, industry experts assess that the current pepper inventory level in Vietnam is low; the 2025 harvest may be delayed by 1-2 months, leading to low output. Therefore, creating a shortage of supply, which may push pepper prices up in the upcoming global market.

Vietnam's pepper exports will set a new record of 1.3 billion USD in 2024

According to data from the Ministry of Agriculture and Rural Development, pepper exports in the first 10 months of 2024 reached more than 220,000 tons, worth 1.12 billion USD, down 2.3% in volume but up 48.2% in value over the same period in 2023.

In 2014, Vietnam's pepper export turnover set a record of 1.2 billion USD for the first time. But from then until 2023, the 1 billion USD mark was lost. However, with the results of the first 10 months of 2024, pepper export turnover increased by nearly 50%.

Thus, after 10 years of leaving the "billion dollar club"; it is forecasted that in 2024, Vietnam's pepper will set a new record of 1.3 billion USD.

Source: https://tuoitre.vn/nhu-cau-the-gioi-yeu-gia-tieu-yeu-xiu-20241220152231551.htm